Inflation declines further in January 2014

Tuesday, 4 February 2014 00:01 - - {{hitsCtrl.values.hits}}

Inflation, as measured by the year-on-year (YoY) change in the Colombo Consumers’ Price Index (CCPI) (2006/07=100), which is computed by the Department of Census and Statistics, declined further to 4.4% in January 2014, for the third consecutive month, from 4.7% in December 2013. Annual average inflation, which followed a declining trend since June 2013, moderated further to 6.5% in January 2014, from 6.9% in December 2013.

The marginal increase in the CCPI by 0.6% in January 2014 over the previous month was mainly due to the price increase in the Non-food category by 1.7% which, however, was partly off-set by the decline in price of Food category by 0.9%. Within the Food category, prices of up-country vegetables, big onions, red onions, potatoes, limes and fruits decreased. In the Non-Food category, price increases were reported in the sub-categories of Health (by 8.0%); Communication (by 3.9%); Transport (by 3.3%); Furnishing, Household Equipment and Routine Household Maintenance (by 0.7%); Miscellaneous Goods and Services (by 0.2%); Housing, Water, Electricity, Gas and Other Fuels (by 0.1%); and Clothing and Footwear (by 0.1%). Meanwhile, the prices in the sub categories of Recreation and Culture; and Education remained unchanged during the month. Annual average core inflation continuously decelerated to 4.1% in January 2014, for the eighth month in succession, from 4.4% in December 2013, reflecting the demand driven inflation in check. YoY core inflation increased to 3.5% in January 2014 from 2.1% in December 2013.